Grabbing Back Your Distribution Channel in China
摘要
China’s evolution into the world’s biggest marketplace has led to many international brands re-thinking their China strategy. For many this means taking back their distribution channel within China. In most cases this will only be done successfully by acquiring the business of the distributor. A dispute with a Chinese based distributor will unlikely turn out to be anything other than disruptive and damaging to the brand’s business in China. If poorly done the result can be litigation; disruption to business; dumping of the brand’s stock and great cost to distributor – very much a lose/lose outcome. Accordingly for many international brands the only route forward is to buy out its distributor. The good news is that in our experience once the international brand has acquired its distribution channel in China then the business rapidly improves. The difficulty is the actual acquisition – in this regards careful planning, drafting and execution are key to a successful transaction.
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